The question of money

<p>Government revenue comes from taxation, right? At least that's a common view.</p> <p>But, according to Modern Monetary Theory, federal governments must create the dollars before they can be taxed: money that does not exist cannot be taxed.</p> <p>That means a federal government budget is not like a household, business or even a state government budget.</p> <p>While it's still controversial in some corners, MMT has profound implications for how governments spend and whether they run deficits. There are also a few caveats.</p> <p>To navigate us through a complicated topic, you couldn't ask for a better guide than <a href='https://modernmoneyaustralia.org/dr-steven-hail/'>Dr Steven Hail</a> who is an economist at MML and Adjunct Associate Professor at Torrens University Australia.</p> <p> </p> <p>Interview by Rod as part of a series for the book <a href='https://link.springer.com/book/10.1007/978-3-030-78795-0#aboutBook'>Sustainability and the New Economics</a>.</p>